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HomeMy WebLinkAbout2016-03-02 Finance Committee Minutes� F Town of Reading s Meeting Minutes RECEIVED TOWN CLERK READING. MASS. Board - Committee - Commission - Council: Finance Committee 1016 MAR 31 A B 18 I Date: 2016 -03 -02 Time: 7:30 PM Building: Reading Town Hall Location: Conference Room Address: 16 Lowell Street Session: Open Session Purpose: General Business Version: Attendees: Members - Present: Chair Mark Dockser, Paul McNeice, David Neshat, Peter Lydecker, Craig Merry, Vanessa Alvarado, Paula Perry, Marc Moll, Anne Landry Members - Not Present: Others Present: Town Manager Bob LeLacheur, Police Chief Mark Segalla, Fire Chief Greg Burns, Administrative Services Director Matt Kraunelis, Business Administrator Jayne Miller, Town Accountant Sharon Angstrom, Town Treasurer Nancy Heffernan, Facilities Director Joe Huggins, DPW Director Jeff Zager, Assistant DPW Director Jane Kinsella, Library Director Ruth Urell, Selectman Barry Berman Minutes Respectfully Submitted By: Secretary Topics of Discussion: Chair Mark Dockser called the meeting to order Mr. LeLacheur gave a background on the Town's financial state. Revenues in Reading are at a slow pace because of the lack of developable land. Local aid is down significantly. Compared to our 25 peer communities, our tax levy Is down especially our CIP. Mr. LeLacheur wanted to clear up the split tax rate conversation. If the Selectmen did decide to split the tax rate, it would not create more revenue; It would only shift the burden around in the class. Compared to our peer communities, Reading has a lot more children in school Department requests came in about $1.6 Million above the suggested FINCOM budget number. We are about $3 Million short of a level funded budget. The total general fund budget has a 2.6% change. This year we have level funded OPEB Health insurance came in at 7.6% increase. There is a projected $B million projected surplus in the capital budget however there are multiple capital projects coming up relatively soon. Administrative Services Director Matt Kraunelis presented the Administrative Services budget. He noted there are not many changes from last year. The budget is actually down 3% if you exclude pay and class. We recently hired Jayne Miller as our new Business Page 1 1 ance Committee Minutes - March 2. 2 Administrator. There is one increase in the Town Manager's salary because he was bumped up to 40 hours a week. The legal budget is very hard to predict with the TILT Litigation. We recently hired a Human Resources Generalist to help the HR department that not only supports the town but the schools, RMLD and retirement as well. There was an increase in technology because the Fire Department was added to the public safety software. The Town Clerks office had a major Increase in salaries for election workers because it is a presidential election year. Town Accountant Sharon Angstrom presented the Finance Department's budget. She noted they are down 7.6 %, however, they have $88,000 coming out at the end of the year to pay for the assessors reevaluation. The department has seen a big decline in property tax exemptions, veterans and tax abatements. There has been a steady increase in motor vehicle excise bills. Salaries are up due to an employee moving up a step and going up a step in COLA. There are very small changes in expenses. Mr. Dockser mentioned we have been very conservative with new growth revenues and Ms. Angstrom noted we need to be because we have a balanced budget. Mr. Lelacheur noted we have a lot of developments finishing up and it's hard to project what is on the horizon. Ms. Angstrom noted meal tax is declining. Excise tax has been going up the past couple of years but it is hard to predict that as well. It is a declining tax, the longer you have your car the smaller the tax is. Ms. Perry asked when the tax bills get increased and Ms. Angstrom noted on July 1. Town Treasurer Nancy Heffernan noted the bills get trued up in December so the January bill Is usually when you see the significant increase. Mr. Lelacheur noted It Is time for FINCOM to have a talk about the use of the stabilization fund. Mr. Neshat said if we use $2 million as the number for free cash the future is not pretty. Ms. Angstrom responded that Is correct if we have terrible regeneration. We somehow keep getting good regeneration these past couple of years. Police Chief Segalla and Fire Chief Burns presented the Public Safety Budget. Public Safety is broken down Into Police, Fire /EMS, Dispatch and RCASA which is grant funded. Chief Burns noted emergency calls are up along with substance abuse and narcan use. The fire department can get FEMA reimbursements usually for snow removal efforts and emergency response. They are expecting $173,000 for 2015 storms which would drop Into free cash. Staffing is staying the same. They are in the process of hiring an Assistant Fire Chief which is already budgeted for. The biggest change on the expense side is the ALS medical supplies. They continue to see the costs go up so they budgeted to project actual costs. Overtime was $352,000 this year however it is trending lower now. It was high because of three Injuries and four off at the academy. Mr. LeLacheur noted he thinks if they hired one more firefighter they would save money in the long run. Chief Burns commented it all depends when people go out and for how long and you can't predict that. He noted he tries to staff so he has Flexibility in schedules if something happens. Mr. Dockser asked if we are charging appropriately for ambulance services and asked if most of those fees get paid by the customer or their insurances. Mr. Burns noted they are pretty average in their rates compared to other towns but they do need to talk about whether they should bundle rates or not. Page 1 2 Finance Committee Minutes - March 2. 201 Mr. Berman noted the Board of Selectmen will be going through and looking at all the town's fees. Ms. Perry noted she would hate to see an opportunity go by to raise rates if it is appropriate. Chief Segalla presented the Police Department's budget. He noted there is a 4.4% increase. 95% of the budget goes to personnel. Staffing will be the same. He noted they did ask for a second School Resource Officer. He understands it is not financially doable at this time but does feel the position is needed. Expenses are up. They are regionalizing animal control with North Reading. Police training is up due to Increases. Parking enforcement has been Increased from 18 to 25 hours. The pay and class study increased some steps for crossing guards. Mr. Dockser asked what it would cost for a second SRO and Chief Segalla noted $80,000 without benefits or $90,000 with. He noted they feel they need a larger presence in the middle schools and the schools expressed their Interest in another officer. Dispatch budget has a 5.3% increase and again 95% of their budget goes to staffing. There Is $50,000 in 911 call grants that is no longer available. They added two new dispatchers last year which increased training and uniforms. Joe Huggins presented the Facilities budget. They moved facilities into a town department now but it is still operated out of the high school. Town buildings and custodians are under this budget as well. The maintenance contract from HVAC caused an Increase. Plumbing and electrical Increased for supplies. The alert system facilities has is simply amazing. It sends alerts to Mr. Huggins phone with any problems. The only difference in staffing is they hope to hire an assistant director soon and another custodian. Mr. LeLacheur commented that Mr. Huggins and Ms. Kinsella have been heavily Involved in the library project and have spent a great deal of time on it. Ms. Perry noted that facilities has seen amazing growth over the past couple of years. Mr. LeLacheur noted next week they will review Public Services budget and DPW. The week after will be the School budget. Ms. Perry asked where would building security costs come from and Mr. LeLacheur noted that will be in next week's meeting but they have been meeting on building security and thinking about hiring an outside, independent consultant to help us. Mr. LeLacheur explained the shape we are in today is because we have increased spending every year by 3.1% since the last override. However, 10 years ago we were spending a lot more on debt. Mr. Dockser noted we really need to highlight how much state aid has decreased Ms. Alvarado commented it's also important to highlight new growth compared to other towns. Ms. Perry said we need to explain this in a very basic way so the average person understands. Mr. Dockser suggested FINCOM take a 10 year look at the budget with the things they can predict. Page 1 3 mmittee Minutes - March 2. 2016 - aaae 4 Mr. LeLacheur noted an override is meant to maintain what we have now and maybe add a few things. Adding things to the budget would require such a large override number. He noted we need to show the services we would lose without it. Mr. McNeice made a motion to adilourn at-10:10 PM, second by Mr. Merry and aooroved with Respectfully submitted, Secretary Page 14